Keeping records

If you find you have no money left at the end of the month, the best first step is to keep a record of everything you spend money on each month and other one-off payments during the year such as insurance, car repairs or holidays.Estimate your annual income and divide it by 12. If this figure is less than your monthly expenditure then you have a budget deficit and need to work out a budget plan. If it is higher then you have a surplus.

Budget planning

Make a list or budget plan with separate columns detailing your monthly income and expenditure.Under income you may include salary or any benefits. Break down expenditure into individual expenses such as rent, council tax, transport, gas or electricity, clothing, food and credit card payments.Then tally up the total income and expenditure.

Maximise your income

If you are spending more than your income, it is worth ensuring you are maximising your income and not missing out on any potential benefits or tax breaks.For advice on maximising your income, visit the Consumer Credit Counselling Service.

Evaluating your expenses and reducing spending

If you have maximised your household income, the only way to increase your budget surplus is by reducing your spending. Look at your expenses and ask yourself: “Can I do without any of them?” Once you have found areas where you can make reductions, follow the money-saving tips below.